PotlatchDeltic Reports Q2 2025 Financial Results with Revenue Decline to $275M

PotlatchDeltic Corporation reported its financial results for the second quarter of 2025, revealing total revenues of $275.0 million, a decrease of $45.7 million compared to the same period in 2024. The decline was primarily attributed to the absence of significant rural real estate transactions, including a notable $56.7 million sale of 34,100 acres of timberland in the previous year. Despite this, the company experienced increased lumber prices and higher shipments from its Waldo, Arkansas facility, which contributed positively to revenue generation.

The company's cost of goods sold for the second quarter decreased by $43.1 million to $239.3 million, largely due to fewer rural real estate acres sold and lower logging and hauling costs resulting from reduced harvest activity. Operating income for the quarter was reported at $13.8 million, down from $17.4 million in the prior year, while net income fell to $7.4 million from $13.7 million. Total Adjusted EBITDDA also saw a significant decline, dropping to $52.0 million from $103.2 million year-over-year, reflecting the impact of fewer real estate sales and lower harvest volumes.

In terms of operational developments, PotlatchDeltic's Timberlands segment reported revenues of $101.7 million, an increase from $98.8 million in the previous year, driven by higher sawlog prices in the Northern region. The Wood Products segment also saw revenue growth, reaching $171.8 million, up from $153.6 million, attributed to improved lumber prices and increased production following the completion of the Waldo sawmill modernization project. However, the Real Estate segment faced challenges, with revenues plummeting to $29.1 million from $95.7 million, primarily due to the lack of large-scale sales.

The company continues to focus on strategic initiatives, including its ongoing share repurchase program, which has seen $60.0 million in stock repurchases during the first half of 2025. As of June 30, 2025, PotlatchDeltic had $30.0 million remaining under its repurchase authorization. The company also reported a total outstanding long-term debt of approximately $1.0 billion, with no borrowings under its revolving credit facility, indicating a strong liquidity position.

Looking ahead, PotlatchDeltic remains optimistic about its long-term growth prospects, particularly in the housing market, despite current economic challenges. The company anticipates continued demand for its products driven by structural undersupply in housing and demographic trends favoring home purchases. Additionally, the company is evaluating opportunities in natural climate solutions, which may further enhance its market position in the evolving landscape of environmental sustainability.